The New Zealand dollar eased a touch today as fears abated of an economic slowdown in the United States in the wake of Hurricane Katrina.
At 5pm the kiwi was buying US70.66c from US70.87c at yesterday's local close.
The US dollar bounced off recent multi-month lows today as worries about the economic impact from Katrina were seen as overdone.
Federal Reserve economist Robert Eisenbeis said damage by Katrina to economic growth would likely be short-lived and would not change the underlying dynamics for which the Fed has set monetary policy.
The Fed has hiked rates at 10 straight meetings since June 2004, raising its funds rate to 3.5 per cent from 1 per cent and helping to push the US dollar broadly higher in the first half of the year.
On the local data front, a report by private research house Business and Economic Research Ltd (Berl) warned gross domestic product could slow to 3 per cent in the year to March 2006, from the 3.4 per cent forecast in its June report.
Berl said soaring oil prices, falling migration and political uncertainties ahead of the election are likely to add pressure to the already slowing economy.
Across the Tasman, Australia's central bank today kept interest rates steady at 5.5 per cent for a sixth straight month, and analysts suspect they will remain on hold for months to come.
The following are Reuters currency rates:
5pm today and 5pm yesterday
NZ dlr US70.66 US70.87c
NZ dlr/Aust dlr A92.07 A92.52c
NZ dlr/euro 0.5658 0.5674
NZ dlr/yen 77.69 77.55
NZ dlr/stg 38.41 38.52p
NZ TWI 70.38 70.58
Australian dollar US76.74c US76.61c
Euro/US dollar US1.2487 US1.2493
US dollar/yen 109.98 109.42
- NZPA
<EM>Currency</EM>: Kiwi dips as US economic fears abate
AdvertisementAdvertise with NZME.